Taiwan’s CSC poised to form Shenzhen JV with Munsun

21 January 2014   Category: News, Asia, China, Taiwan   By Asia Asset Management

Capital Securities Corp (CSC) will become the latest Taiwanese securities brokerage to tap into the Mainland market through forming a joint venture (JV) when it joins forces with Munsun Asset Management (Asia) in Qianhai, Shenzhen’s special economic zone.

Alex Wang, president of CSC, told local media that the registered capital of the JV will be somewhere between 100 million RMB (US$15.8 million) and 120 million RMB. CSC will have a 49% stake in the new entity.

Mr. Wang revealed the two parties have already signed a strategic partnership memorandum. The company will submit its application to Taiwan’s regulatory body once the Legislative Yuan passes the “Cross-Strait agreement on trade in services” bill.

Shenzhen-based asset manager Munsun has total AUM of around US$1 billion and is mainly engaged in equities and private equities. 

In January 2013, former China Securities Regulatory Commission (CSRC) chairman, Guo Shu Qing, said the regulator is opening up the Mainland market to Taiwanese securities brokerages, and will be allowing them to set up JVs in Shanghai, Shenzhen, and Fujian. Taiwanese firms will be permitted to hold a stake of up to 51% in the JVs. A number of Taiwanese securities giants such as Fubon, Yuanta, and KGI have paired up with Mainland partners already in anticipation of establishing a foothold in China.